Cryptocurrency mining is the process of verifying transactions and adding them to the public ledger called the block chain. The term can also refer to the release of new cryptocurrency.
In the process, new transactions are compiled into blocks and a computationally tough puzzle is solved. Whoever solves the puzzle first gets to put the next block on the block chain and claims the rewards, which can be newly released cryptocurrency and fees related to the compiled transactions.
If you’ve read around lately, you may have encountered reports about cryptocurrency now being a hot commodity. In 2017, the values of different cryptocurrencies soared and are now worth multiple times their values at the close of 2016. This is the obvious reason behind the rapid expansion of the industry, as more and more people want to take part of it.
If you’re interested in cryptocurrency, you can get your hands on it by either buying it or mining it. Purchasing cryptocurrency is fairly straightforward, but the mining process can be complex.
Cryptocurrency mining is basically the heart and soul of the industry. You see, cryptocurrencies are not controlled by a central bank or banking system, so it’s important to find other methods by which transactions can be validated.
In the industry, validations are performed through a series of complex mathematical equations that ultimately complete what is called the blockchain. But this drives in one major problem.
Without people solving such equations, the blockchain would practically disintegrate. Hence, those who would like to work on these equations may be paid using the cryptocurrency they validate. This sums up the profitability of cryptocurrency mining.
The following are the other benefits offered by cryptocurrency mining:
For someone who takes cryptocurrency mining, the activity can be highly profitable. … Read More ...